Brent Crude rises above 122 bbl, ECB loan may fuel speculative buying
Brent Crude rose above 122 bbl Wednesday, snapping 2 days of losses, in line with gains across broader financial markets on expectations that cheap loans from the European Central Bank will fuel buying of riskier assets. Asian stocks firmed and the euro held its ground as markets expect European banks to borrow about US$670-B from the ECB later in the day.
Front-month Brent rose 0.84 to 122.39 bbl by 0727 GMT, afterfalling 2.62 Tuesday to settle at 121.55. WTI Crude Oil gained 0.44 to 106.99 bbl. The contract slipped 2.01 to settle at 106.55 bbl.
The USD index fell 0.17%. A weaker greenback makes dollar-denominated assets such as crude cheaper for holders of other currencies.
Brent Crude Oil is recovering from a fall, and is poised to rise more than 10% this month, the highest monthly gain since February 2011, on concerns over Iranian supplies.
WTI the US benchmark Crude Oil marker is on track to gain 8.6% in February, the highest since October of Y 2011.
Paul A. Ebeling, Jnr. Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels. www.livetradingnews.com